[Click eStocks] "Otech's AI Data Center Cooling Solution Business on Track... Expected to Benefit from Samsung's Investment in Honam Region"

Otech is expanding its AI data center cooling solution business through collaboration with global HVAC company Carrier, while expectations are rising that it will benefit from the government’s plan to establish a semiconductor cluster in the Honam region. Analysts predict that the geographical advantages of the Gwangju plant will drive further new orders.

Independent research firm ValueFinder stated in a report on July 28 that starting from the second half of this year, Otech is expected to see growth in both its core and new businesses, propelled by a surge in new orders centering on AI data center cooling solutions.

Otech, listed on KOSDAQ since 2003, specializes in special purpose vehicles and heating, ventilation, and air conditioning (HVAC) equipment. The special vehicle segment is broadening its scope in response to the expanding purpose-based vehicle (PBV) market. Its subsidiary, Otech Carrier, focuses on HVAC and heat pump systems, delivering stable performance in the domestic market and serving as a key profit driver for the group.

To enter the AI data center cooling market, the company is strengthening technological collaboration with global Carrier. In the first quarter of this year, Carrier launched a cooling distribution unit (CDU) for data centers, expanding its business from a focus on chillers to liquid cooling solutions. Its flagship product, the ‘CDU 65LL,’ has completed registration on the Nvidia Marketplace and aims to reach mass production readiness within the year.

Otech Carrier also plans to actively target the domestic AI data center market by unveiling Carrier’s CDU at the domestic HVAC exhibition in the second half of the year.

Large-scale government investment plans are also cited as factors boosting growth expectations. In June, the government announced plans for a semiconductor cluster in the Honam region worth approximately 800 trillion won as part of the “three major mega-projects.” Samsung Electronics will invest around 425 trillion won to build a semiconductor plant in Gwangju and an AI data center in Haenam, while SK hynix is pursuing plans to build an AI data center with a capacity of 1 gigawatt (GW) in the southwest region, including Haenam.

Although the specific business timeline has yet to be confirmed, Otech owns a production facility of about 92,560 square meters in the Gwangju Hanam Industrial Complex and is expected to secure a geographical advantage as the regional supply chain is built in the future. Analysts believe the company’s heat pump technology may also be utilized if demand for cooling and waste heat recovery rises with the expansion of AI data centers.

Lee Chungheon, CEO of ValueFinder, commented, “There are not many companies with a comprehensive lineup of data center cooling systems, so Otech Carrier is expected to expand its market share. The company already has sufficient cash generation capacity from its existing HVAC business, so there is ample financial room for investment in new businesses.”

He added, “As the Honam semiconductor cluster enters full-scale development and regional supply chain demand emerges, special attention should be paid to Otech, which owns the Gwangju plant, as a potential beneficiary.”

Otech is expected to secure mid- to long-term growth momentum by expanding its AI data center cooling solution business and leveraging its geographical strength in connection with the development of the Honam semiconductor cluster.

This content was produced with the assistance of AI translation services.